DEFINING THE ENTREPRENEURIAL SPIRIT

GLOBAL ENTREPRENEURSHIP REPORT
DEFINING THE
­ENTREPRENEURIAL SPIRIT
FACTS & FIGURES
REPORT EDITION
SAMPLE
COUNTRIES
6TH
49,775
44
FIELDWORK
May to August 2015
SAMPLE
49,775 women and men aged 14 – 99 (representative target groups of the countries’ populations)
COUNTRIES
Australia, Austria, Belgium, Brazil, Bulgaria, Canada, China, Colombia, Croatia, Czech Republic, Denmark, Estonia,
Finland, France, Germany, Great Britain, Greece, Hungary, India, Ireland, Italy, Japan, Korea, Latvia, Lithuania,
Malaysia, Mexico, Netherlands, Norway, Poland, Portugal, Romania, Russia, Slovakia, Slovenia, South Africa, Spain,
Sweden, Switzerland, Thailand, Turkey, Ukraine, USA, Vietnam.
In China, Colombia, India, Mexico and South Africa, Thailand and Vietnam only people in metropolitan areas participated.
PREFACE
Today more than ever, people are turning to entrepreneurship to achieve the lifestyles they desire. And
as social and economic climates change, so do the
reasons people venture out on their own. In order to
gain a deeper understanding of the motivations and
desires of entrepreneurs, Amway has conducted the
Amway Global Entrepreneurship Report the past several years.
The 2015 report is our biggest yet surveying nearly
50,000 respondents in 44 countries. This year’s study
focused on “Defining the Entrepreneurial Spirit.” by
introducing the “Amway Entrepreneurial Spirit Index”.
We also found most entrepreneurs enjoy learning new
things, want to enjoy life and like to be in charge. Fear of
failure and a lack of confidence were also themes many
hopeful entrepreneurs shared. Fortunately, many countries, organizations and businesses around the world
are investing in programs to eliminate these hurdles –
investments we hope to see more of in the future.
Helping people start a business of their own has been
Amway’s passion since our founding more than half a
century ago. Entrepreneurship is a way for people to realize a better life for themselves and their families. Entrepreneurs also create jobs and encourage competition.
They spur economic growth and bring opportunities to
communities. So it’s important businesses like Amway
know how entrepreneurs think and act in order to better
support and encourage them.
We’ll continue to do what we can to help entrepreneurs
have the best possible chance at owning and succeeding in business. We believe entrepreneurs bring a lot of
value to the people around them and our hope is this
study helps advance that understanding.
METHOD
Face-to-face / telephone interviews
INSTITUTE
GfK Nuremberg, Germany
Doug DeVos
President
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#AGER2015
Steve Van Andel
Chairman
#AGER2015
3
MANAGEMENT SUMMARY
KEY RESULTS OF THE AMWAY GLOBAL ENTREPRENEURSHIP REPORT 2015
“The best way to predict the future is to create it.”1 Each day, entrepreneurs follow that
spirit and thereby contribute to the competitiveness and prosperity of our countries.
Yet, how do people around the world feel about entrepreneurs? And what do people
actually think about becoming an entrepreneur themselves? The 2015 Amway Global
Entrepreneurship Report (AGER) aims to shed light on these questions and provide a
current picture of the reputation of entrepreneurship.
PROF. DR.
ISABELL M. WELPE
Chair for Strategy
and Organization,
Technische Universität
München (TUM)
This year’s findings show that entrepreneurs are perceived as avid learners who strive
for success. Half of the respondents perceive the society as entrepreneurship-friendly.
Entrepreneurship remains highly valued by three quarters of the respondents and almost half can imagine starting a business. The newly introduced Amway Entrepreneurial
Spirit Index (AESI) measures motivational factors for starting a business. It shows that
young respondents2 have the strongest desire to becoming self-employed. As age increases the desire for entrepreneurship weakens, yet middle-aged respondents3 are
the most confident in having the necessary resources and skills. When asked about
drivers and obstacles to starting a business, respondents are motivated most by independence and self-fulfillment. The fear of failure is a strong obstacle to more than
two thirds of respondents, mainly driven by the fear of financial consequences from
business failure.
WHAT DO PEOPLE THINK ABOUT ENTREPRENEURSHIP?
Entrepreneurship is a valuable source of innovation and renewal to our society. Governments establish entrepreneurship programs to increase entrepreneurial activity, such
as education or funding. However, what does the general public think about entrepreneurs? And how entrepreneurship-friendly does the general public rate their society?
Respondents to the 2015 AGER shared their opinion on these questions.
Our behavior and actions are guided across cultures by a set of general motivational
values,4 and each entrepreneur (as everyone else) has his or her own individual set of
values5. The general public expresses a clear picture on what values they feel characterize entrepreneurs6. Respondents think that entrepreneurs are foremost open for
change, followed by a focus on personal success7. Openness for change refers to values, such as learning new things, and risk-taking, which 84 percent and 70 percent
respectively of the respondents attribute to entrepreneurs. Personal success comprise values such as enjoying one’s life (78 percent) and wanting to be in charge of
others (75 percent). On the contrary, fewer respondents think that entrepreneurs are
driven by values such as tradition (48 percent). Interestingly, the results from female
and male respondents reveal no difference, and only minor differences can be found
across age groups.
ship-friendly environment. This opinion is shared across age groups and gender. However, between countries approval rates largely differ. In countries that are characterized by avoiding uncertainty8, respondents perceive their society much less friendly
towards entrepreneurship. When considering culture, lower values in countries are
likely to be caused to some degree by their cultural values.
Together, in the public opinion, entrepreneurs are seen as open for change and striving for success with a rather friendly view on entrepreneurship. At least that’s how
respondents felt when voicing their opinion toward other entrepreneurs. The next section goes a step further to ask how respondents think about entrepreneurship as an
opportunity for themselves.
WHO WANTS TO BE AN ENTREPRENEUR?
Becoming an entrepreneur involves two critical factors. First, the emergence of an
entrepreneurial opportunity and second, the intention to start a business9,10. While the
occurrence of business opportunities are rare events, a person can intend to become
an entrepreneur at any time. In 2015, the entrepreneurial potential – measured as the
proportion of respondents who can imagine starting a business – remains high at 43
percent. However, the entrepreneurial potential varies between demographic groups.
Female respondents are less willing to start a business compared to male respondents 11.
And as age increases respondents are less inclined to becoming self-employed, which
is consistent with prior findings12,13. Given the importance of intending to start a business when facing an opportunity, the Amway Entrepreneurial Spirit Index examines
drivers of individuals’ intentions to start a business.
THE AMWAY ENTREPRENEURIAL SPIRIT INDEX: AESI
Intentions toward a certain behavior – such as the willingness to start a business – are
driven by motivational factors9,10. The more favorable these factors are for the behavior,
the more persistent people will be to succeed. The 2015 AGER introduces the Amway
Entrepreneurial Spirit Index14, which builds on three established motivational factors.
The index consists of the respondents’ perception of:
• Desirability: whether respondents desire to start a business.
•Stability against social pressure: whether respondents would let their social
environment, such as family and friends, dissuade them from starting a business.
• Feasibility: whether respondents feel prepared to start a business.
GLOBAL AESI AVERAGE
The Amway Entrepreneurial
Spirit Index score may range
from 0 to 100. The score is
calculated as the mean of its
three subdimensions.
51
SCORE
55%
49%
47%
DESIRE
STABILITY
FEASABLE
The global AESI score is at 5115: 55 percent of the respondents have the desire to start
a business, 47 percent think starting a business is feasible, and 49 percent would not
let their social environment dissuade them from starting a business.
Results are inconclusive on how entrepreneurship-friendly respondents perceive the
society in their country. Only half are convinced that society provides an entrepreneur-
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AESI: DESIRABILITY
The desire to start a business
falls with increasing age.
65%
AGE GROUP UNDER 35 YEARS
58%
AGE GROUP 35 TO 49 YEARS
44%
AGE GROUP OVER 50 YEARS
As suggested, the higher a country’s AESI score, the more respondents can imagine
starting a business. The dimensions of the AESI provide explanations for differences in
the entrepreneurial potential among demographic groups described above. Compared
to men, fewer female respondents report starting a business as desirable and feasible,
as well as more female respondents would let others close to them dissuade them
from starting a business16. This result is reflected in the lower fraction of women that
can imagine starting a business11. A different pattern can be found across age groups.
The desire to start a business falls with increasing age. While 65 percent of the respondents younger than 35 years report starting a business as desirable, only 44 percent of the respondents older than 50 do so. Otherwise, respondents age 35 to 49
show the highest confidence in being prepared to start a business. Respondents age
50 or older score lowest in desirability, feasibility and stability against social pressure.
ATTITUDES TOWARDS ENTREPRENEURSHIP
Attitudes in favor of entrepreneurship foster the intention to start a business17 by raising its desirability 9. Around the world, respondents still highly value entrepreneurship
with 75 percent of the respondents having a positive attitude towards entrepreneurship18. And although agreement varies across surveyed countries, it is remarkable
that in every country the majority of respondents is positive about entrepreneurship
(see page 7). Differences between countries can be attributed again to cultural differences. Countries avoiding uncertainty8 are less positive about entrepreneurship.
REFERENCES
The origin of the quote is unclear. Both Abraham Lincoln, 16th president of the USA and Peter
Drucker, management researcher, are attributed the authorship.
1
Young respondents are referred to the age of 34 or younger.
2
Middle-aged respondents range from the age of 35 to 49 years.
3
Schwartz, S. H. (1994). Are there universal aspects in the structure and contents of human values? Journal of Science Issue, 50(4), 19–45.
4
Holland, D. V. & Shepherd, D. A. (2013). Deciding to persist: Adversity, values, and entrepreneurs’
decision policies. Entrepreneurship Theory and Practice, 37(2), 331–358.
5
Respondents answered ten questions on how they think what motivates entrepreneurs. Each
question referred to one of the ten dimensions of Schwartz’s (1994) motivational values. The
questions were derived from Hinz et al. (2005) and adapted for the questionnaire. C.f., Hinz, A.,
Brähler, E., Schmidt, P., & Albani, C. (2005). Investigating the circumplex structure of the portrait
values questionnaire. Journal of Individual Differences, 26(4), 185–193.
6
The ten values can be aggregated to higher order values such as openness for change (Schwartz, 1994).
7
Uncertainty avoidance is a cultural dimension and “expresses the degree to which the members
of a society feel uncomfortable with uncertainty and ambiguity.” (http://geert-hofstede.com/­
national-culture.html)
8
Krueger, N. F. & Brazeal, D. V. (1994). Entrepreneurial potential and potential entrepreneurs.
Entrepreneurship Theory and Practice, 18(3), 91–104.
9
Beyond the general attitude towards entrepreneurship, research identified specific
attitudes towards or against entrepreneurship. The attitudes towards income and independence should foster entrepreneurship, while disapproval of risk should impede
entrepreneurship17. For all age groups and regardless of gender, independence and
self-fulfillment are the most appealing reasons to start a business. Income related
attitudes are less important. Worth noting, respondents from countries with a higher
GDP per capita19 also rate self-fulfillment as a strong reason to start a business. As
expected, respondents address the risk associated with self-employment17. 70 percent of the respondents perceive the fear of failure as an obstacle to becoming selfemployed, which is consistent with the results from 2013. The strongest drivers for
the fear of failure are the financial consequences of business failure followed by the
threat of economic crises.
Ajzen, I. (1991). The theory of planned behavior. Organizational Behavior and Human Decision
Process, 50(2), 179–211.
10
The entrepreneurial potential for female respondents is 38%, for male respondents 47%.
11
Zhao, H., Seigert, S. E. & Hills, G. E. (2005). The mediating role of self-efficacy in the development
of entrepreneurial intentions. Journal of Applied Psychology, 90(6), 1265–1272.
12
Hatak, I., Harms, R., & Fink, M. (2015). Age, job identification, and entrepreneurial intention. Journal of Managerial Psychology, 30(1), 38–53.
13
The Amway Entrepreneurial Spirit Index builds on Ajzen’s (1991) Theory of Planned Behavior.
14
The index is calculated from the mean of its dimensions. The exact value of the AESI is 50.6 percent:
Desirability: 55.0 percent, Stability against social pressure: 49.5 percent, Feasibility: 47.3 percent.
15
CONCLUSION
The respondents to the 2015 AGER think of the society as relatively entrepreneurshipfriendly and describe entrepreneurs as open to learning and striving for success. The
Amway Entrepreneurial Spirit Index will help to better understand why demographic
groups can (or cannot) imagine starting a business. Targeted entrepreneurship programs are in place to both increase the desire and the preparedness for starting a
business and increasing acceptance in society. The only downside is fear of financial
consequences from business failure is still a severe obstacle for starting a business.
Addressing this issue might give potential entrepreneurs just the push they need to
get started. And when they do, it will pay off, for everybody.
Perceived feasibility of starting a business: 42 percent of female vs. 52 percent male respondents. Desirability of starting a business: 51 percent female vs. 59 percent male respondents.
Stability against social pressure: 47 percent female vs. 52 percent male respondents.
16
Douglas, E. J. & Shepherd, D. A. (2002). Self-employment as a career choice: Attitudes, entrepreneurial intentions, and utility maximization. Entrepreneurship Theory and Practice, 26(3), 81–90.
17
For countries surveyed across the years 2013 and 2014, the overall positive attitude towards
entrepreneurship remained at a similar level.
18
Data source for GDP per capita: World Bank data from 2014 (http://data.worldbank.org/­indicator/
NY.GDP.PCAP.CD).
19
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ENTREPRENEURIAL ATTITUDE
AND POTENTIAL
INDEPENDENCE AND
­SELF-FULFILLMENT
QUESTION: How do you see entrepreneurship and can you imagine starting a business?
QUESTION: In your opinion, which aspects appeal to you as reasons to start up your own business?
38%
45% 96%
DENMARK
33% 94%
NORWAY
62% 91%
CHINA
47% 91%
ESTONIA
77% 90%
COLOMBIA
81% 90%
MEXICO
38% 90%
SWEDEN
43% 89%
FINLAND
42% 88%
SWITZERLAND
71% 88%
VIETNAM
43% 86%
CANADA
51% 86%
USA
44% 85%
AUSTRALIA
58% 85%
BRAZIL
34%
38%
32%
24%
BETTER COMPATIBILITY OF FAMILY, LEISURE TIME AND CAREER
41% 84%
GREAT BRITAIN
40% 84%
NETHERLANDS
51% 83%
LATVIA
48% 83%
LITHUANIA
45% 83%
SLOVENIA
53% 79%
SOUTH AFRICA
36% 77%
FRANCE
48% 76%
MALAYSIA
43% 75%
GLOBAL
33% 73%
BELGIUM
42% 73%
ITALY
60% 72%
THAILAND
38% 71%
POLAND
37% 71%
RUSSIA
34%
51%
SECOND INCOME PROSPECTS
45%
38%
AGE GROUPS
< 35
35 – 49
>= 50
52% 70%
INDIA
52% 69%
GREECE
37% 69%
SPAIN
37% 68%
IRELAND
37% 66%
CZECH REPUBLIC
48% 66%
KOREA
13% 63%
JAPAN
SELF-FULFILLMENT, POSSIBILITY TO REALIZE OWN IDEAS
53%
29% 63%
UKRAINE
25% 61%
CROATIA
35% 61%
HUNGARY
25% 60%
GERMANY
39% 58%
TURKEY
39% 57%
PORTUGAL
51%
43%
33% 55%
SLOVAKIA
27%
25%
24%
24% 54%
BULGARIA
26% 54%
ROMANIA
29% 51%
AUSTRIA
Blue squares represent positive attitude towards entrepreneurship. The red squares depict the entrepreneurship
potential which is measured as the portion of respondents who can imagine starting a business. Countries are put in
descending order of the positive attitude.
8
#AGER2015
RETURN TO JOBMARKET, ALTERNATIVE TO UNEMPLOYMENT
INDEPENDENCE FROM AN EMPLOYER, BEING MY OWN BOSS
#AGER2015
9
AMWAY ENTREPRENEURIAL SPIRIT INDEX
QUESTION: If you think of yourself, do you agree with the following statements?
I consider starting a business as a desirable career opportunity for myself (desire).
My family or friends could never dissuade me from starting a business (stability against social pressure).
I possess the necessary skills and resources for starting a business (feasability).
INDEX
51
79
79
79
77
74
74
10
Countries with similar score are ranked regarding the not illustrated decimal places in the data.
RANK
DESIRE
STABILITY
GLOBAL AVERAGE
55%
49%
47%
01.
INDIA
94%
76%
68%
02.
CHINA
85%
71%
81%
03.
THAILAND
89%
76%
72%
04.
VIETNAM
89%
67%
75%
05.
SOUTH AFRICA
76%
73%
73%
06.
85%
60%
76%
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MEXICO
50
FEASABLE
73
70
69
62
60
59
54
07.
MALAYSIA
82%
67%
69%
08.
SLOVENIA
71%
77%
63%
09.
BRAZIL
77%
67%
63%
10.
TURKEY
66%
64%
55%
11. LITHUANIA
82%
56%
41%
12.
COLOMBIA
85%
33%
60%
13.
57%
62%
43%
FINLAND
53
53
53
52
52
52
51
14.
USA
57%
43%
60%
15.
DENMARK
64%
41%
53%
16.
NETHERLANDS
48%
59%
51%
17.
CZECH REPUBLIC
62%
56%
38%
18.
GREECE
65%
51%
39%
19.
IRELAND
47%
53%
55%
20.
54%
44%
56%
AUSTRALIA
50
49
48
47
46
45
44
21.
ITALY
54%
51%
44%
22.
CANADA
47%
43%
59%
23.
SWEDEN
50%
44%
52%
24.
GREAT BRITAIN
44%
45%
55%
25.
SWITZERLAND
46%
44%
50%
26.
SLOVAKIA
53%
49%
37%
27.
LATVIA
54%
38%
44%
28.
62%
37%
34%
KOREA
44
44
44
44
41
39
38
37
29.
NORWAY
40%
39%
54%
30.
SPAIN
46%
45%
42%
31.
PORTUGAL
45%
45%
42%
32.
ESTONIA
46%
49%
37%
33.
BELGIUM
41%
42%
40%
34.
FRANCE
29%
45%
42%
35.
ROMANIA
39%
51%
24%
36.
38%
52%
22%
HUNGARY
35
35
34
32
31
29
28
19
37.
BULGARIA
42%
36%
27%
38.
AUSTRIA
27%
40%
37%
39.
UKRAINE
42%
43%
28%
40.
RUSSIA
43%
30%
23%
41.
GERMANY
26%
38%
29%
42.
POLAND
24%
28%
34%
43.
CROATIA
18%
38%
28%
44.
JAPAN
29%
19%
8%
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FEAR OF FAILURE
QUESTION: In your opinion, is the fear to fail an obstacle to starting a business and if yes,
which of those aspects contribute the most to this fear of failing with an enterprise?
ENTREPRENEURSHIPFRIENDLINESS
QUESTION: If you please think about politics, media coverage and the people you know:
How entrepreneurship-friendly is the society in your country in general?
70%
4%
YES
SOCIETY IN MY COUNTRY IS ENTREPRENEURSHIP-FRIENDLY …
no answer
NO
26%
Obstacles starting a business:
41%
Financial burdens up to
bankruptcy
16%
Threat of unemployment
15%
Personal disappointment
12%
Disappointing or losing
my family
8%
Reputation loss in front
of friends, co-workers,
or business partners
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29%
Threat of the economic
crisis
16%
Legal consequences,
lawsuits
13%
Being forced to take over
the responsibility
8%
Not to be given a second
chance
DENMARK
84%
SOUTH AFRICA
78%
THAILAND
78%
GREAT BRITAIN
75%
CHINA
73%
INDIA
73%
VIETNAM
73%
SWEDEN
70%
NETHERLANDS
68%
USA
67%
MALAYSIA
66%
SWITZERLAND
66%
NORWAY
66%
AUSTRALIA
65%
IRELAND
60%
BELGIUM
58%
ESTONIA
58%
RUSSIA
56%
POLAND
54%
TURKEY
53%
GREECE
52%
GLOBAL AVERAGE
50%
CZECH REPUBLIC
50%
FINLAND
50%
AUSTRIA
49%
LATVIA
49%
MEXICO
49%
KOREA
48%
GERMANY
44%
LITHUANIA
44%
UKRAINE
43%
FRANCE
43%
ITALY
43%
CROATIA
37%
SLOVAKIA
34%
BRAZIL
33%
SPAIN
33%
JAPAN
30%
COLOMBIA
28%
SLOVENIA
24%
HUNGARY
20%
ROMANIA
19%
CANADA
18%
PORTUGAL
16%
BULGARIA
8%
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CHARACTERISTICS OF
AN ­ENTREPRENEUR
QUESTION: Do you agree with those statements about entrepreneurs?
84%
Entrepreneurs like to learn things
78%
Entrepreneurs want to enjoy life
75%
Entrepreneurs like to be in charge and
tell others what to do
70%
Entrepreneurs look for adventures and
like to take risks
70%
Entrepreneurs think that the safety of
their country is very important
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68%
Entrepreneurs like to stand out and
impress other people
62%
Entrepreneurs want to help people
60%
Entrepreneurs think people should follow
rules at all times, even when no one is
watching
54%
Entrepreneurs want justice for everybody, even for people they don’t know
48%
Entrepreneurs are traditional
#AGER2015